Blue Star may hike AC prices

Blue Star may hike AC prices

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Leading air conditioner maker, Blue Star may hike the prices of its products in the next few months. Though the final decision has not been taken in this regard, the company may be forced to go ahead with price hike if the raw material price continues to rise and rupee continues to depreciate. The company had raised prices by 4-6% in the third quarter of last financial year.

According to analysts, however, market conditions are not favourable for a price rise as there is an intense price competition going on in the market. Market reports suggest that smaller players have become more active which has forced some leading manufacturers like LG and Daikin to  cut prices.

Further, demand for ACs too was not on expected lines with unseasonal rains playing a spoilsport. While Kerala/ Karnataka/ Coastal TN markets continue to be weak, Telangana/ Maharashtra/ Goa/ Gujarat/ North India markets have seen some improvement in the last few weeks.

Blue Star has also decided to become aggressive in North Indian market where it has just 6% market share as against 12% market share PAN India. With an eye on capturing more market in the North, the company has moved the divisional office from Chennai to Delhi.

The company has also decided to expand its Himachal facility which would start manufacturing Indoor Units and Inverter Drives. The company has decided to move water coolers manufacturing to Wada. Manufacturing is expected to commence at Sri City in the next few quarters, with the facility becoming completely operational by April 2021.